TRADEWEB MARKETS INC-CLASS A (TW)
US8926721064 - Common Stock
Taking everything into account, TW scores 6 out of 10 in our fundamental rating. TW was compared to 218 industry peers in the Capital Markets industry. TW is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. TW is valued quite expensively, but it does show have an excellent growth rating. With these ratings, TW could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year TW was profitable.
In the past year TW had a positive cash flow from operations.
TW had positive earnings in each of the past 5 years.
In the past 5 years TW always reported a positive cash flow from operatings.
1.2 Ratios
TW has a Return On Assets of 6.11%. This is in the better half of the industry: TW outperforms 75.81% of its industry peers.
The Return On Equity of TW (7.86%) is comparable to the rest of the industry.
TW has a better Return On Invested Capital (7.47%) than 76.28% of its industry peers.
TW had an Average Return On Invested Capital over the past 3 years of 5.53%. This is in line with the industry average of 6.96%.
The last Return On Invested Capital (7.47%) for TW is above the 3 year average (5.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 7.86% | ||
| ROIC | 7.47% |
ROA(3y)4.63%
ROA(5y)3.69%
ROE(3y)5.97%
ROE(5y)4.85%
ROIC(3y)5.53%
ROIC(5y)4.7%
1.3 Margins
The Profit Margin of TW (27.46%) is better than 68.84% of its industry peers.
In the last couple of years the Profit Margin of TW has grown nicely.
The Operating Margin of TW (38.83%) is better than 66.05% of its industry peers.
In the last couple of years the Operating Margin of TW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.83% | ||
| PM (TTM) | 27.46% | ||
| GM | N/A |
OM growth 3Y8.57%
OM growth 5Y7.58%
PM growth 3Y13.49%
PM growth 5Y2.34%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
TW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TW has more shares outstanding
TW has a worse debt/assets ratio than last year.
2.2 Solvency
TW has an Altman-Z score of 11.43. This indicates that TW is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.43, TW belongs to the top of the industry, outperforming 97.21% of the companies in the same industry.
TW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.43 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.00 indicates that TW has no problem at all paying its short term obligations.
TW has a Current ratio of 3.00. This is in the better half of the industry: TW outperforms 78.60% of its industry peers.
A Quick Ratio of 3.00 indicates that TW has no problem at all paying its short term obligations.
The Quick ratio of TW (3.00) is better than 78.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
TW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
TW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.93% yearly.
TW shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.45%.
TW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.27% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y19.76%
EPS 5Y18.93%
EPS Q2Q%36.36%
Revenue 1Y (TTM)29.45%
Revenue growth 3Y14.45%
Revenue growth 5Y15.27%
Sales Q2Q%36.72%
3.2 Future
The Earnings Per Share is expected to grow by 15.83% on average over the next years. This is quite good.
Based on estimates for the next years, TW will show a quite strong growth in Revenue. The Revenue will grow by 10.61% on average per year.
EPS Next Y32.83%
EPS Next 2Y23.33%
EPS Next 3Y19.38%
EPS Next 5Y15.83%
Revenue Next Year29.68%
Revenue Next 2Y22.68%
Revenue Next 3Y18.55%
Revenue Next 5Y10.61%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 48.01, the valuation of TW can be described as expensive.
80.93% of the companies in the same industry are cheaper than TW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TW to the average of the S&P500 Index (28.65), we can say TW is valued expensively.
A Price/Forward Earnings ratio of 39.28 indicates a quite expensive valuation of TW.
Based on the Price/Forward Earnings ratio, TW is valued a bit more expensive than the industry average as 75.81% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, TW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.01 | ||
| Fwd PE | 39.28 |
4.2 Price Multiples
TW's Enterprise Value to EBITDA is on the same level as the industry average.
TW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.93 | ||
| EV/EBITDA | 32.84 |
4.3 Compensation for Growth
TW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TW has a very decent profitability rating, which may justify a higher PE ratio.
TW's earnings are expected to grow with 19.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)2.54
EPS Next 2Y23.33%
EPS Next 3Y19.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, TW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.01, TW is paying slightly less dividend.
With a Dividend Yield of 0.31, TW pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
On average, the dividend of TW grows each year by 10.06%, which is quite nice.
TW has been paying a dividend for over 5 years, so it has already some track record.
TW has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)10.06%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
TW pays out 18.52% of its income as dividend. This is a sustainable payout ratio.
The dividend of TW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.52%
EPS Next 2Y23.33%
EPS Next 3Y19.38%
TRADEWEB MARKETS INC-CLASS A
NASDAQ:TW (11/21/2024, 1:32:01 PM)
134.42
-0.58 (-0.43%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.01 | ||
| Fwd PE | 39.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.46
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 7.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.83% | ||
| PM (TTM) | 27.46% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3 | ||
| Quick Ratio | 3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y19.76%
EPS 5Y
EPS Q2Q%
EPS Next Y32.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.45%
Revenue growth 3Y14.45%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y